Stock market

What is the stock market?

The stock market is called the market made up of a set of companies, organizations and individuals, who carry out transactions of financial products in the different stock exchanges around the world.

At a global level, this market works directly with transactions related to financial assets of any exchange, being governed by supply and demand. All this makes it possible to determine the cost of the assets that are given as an exchange.

Stock market elements

Among the elements that make up the stock market, we can find the following:

• Bag of values or market where the purchase and sale takes place.
• Stock brokers or brokers.
• Investors or people who buy financing.
• Issuers or companies.
• Regulatory institutions that monitor the smooth running of operations.

Stock market characteristics

The most notable characteristics of the stock market are the following:

• It's a market centralized and regulated.
• It allows companies to obtain money to finance their projects.
• The increase or decrease in prices depends on the stock indices.
• Count with one primary market where companies and governments issue financial products, and with a Secondary market where people negotiate the marketing of these products.

Stock market functions

Knowing how the stock market works is very relevant, especially in an economic field related to supply and demand.

Its usefulness consists of allow various securities to be traded for market prices, which is made up of companies or people who bid and demand. In this way, the interaction in the market manages to establish an ideal price for the different values.